Volvo Cars plans to open its first US plant

The $500 million plant will be Volvo's first car plant in North America.

The Swedish automaker says it has a short list of possible locations, but didn't reveal them Monday. Spokesman Russell Datz says Volvo will announce the location in about a month.

Volvo has been owned by Chinese automaker Geely Holding since 2010. It currently has two plants in Europe and two in China.

Volvo CEO Hakan Samuelsson said the decision to open a U.S. plant highlights Volvo's long-term commitment to the U.S. market. The brand hopes to almost double its U.S. sales to 100,000 over the next few years.

Datz says the new plant will also reduce shipping costs and insulate Volvo from currency fluctuations.